Newbie student landlord success

All those new landlords out there who may be getting depressed at the negative news feeds on buy-to-let; may be cheered by one of my friends partners recent experiences.

Jan had no previous experience at letting property decided to buy a place in Sheffield to let to post grad students. Having brought the 3 bed semi earlier this year she and my mate Gareth have spent the last 6 months doing the property up. Jan brought the property for £115,000 cash ....so no finance charges. She has spent about £25k doing the place up taking the total capital expenditure to around £140,000.

Having completed the refurb at the beginning of September Jan was fretting that she had missed the boat for this academic year. However, last week I met up Gareth for a pint and it appears Jan's managed to let all 4 rooms to foreign students for a mixture of 6 & 12 month tenancies. The rents for the room average about £260 a month or around £65 a week. This means a total rent of over a grand a month or £12k a year.

On my calculations that works out at just over an 8.5% gross yield. Result!

It just shows that good investment opportunities are still out there.....but just don't expect them to be handed to you on a plate.

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